Fiberweb (India) Limited Q1 FY18 Result Update Presentation August - - PDF document

Fiberweb (India) Limited

Q1 FY18 Result Update Presentation August 2017

This presentation has been prepared by Fiberweb (India) Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No

• ffering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this

• Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents
• f, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections. 2

Disclaimer

Table of Contents

➢ Consolidated Quarterly Financial Highlights ➢ Consolidated Annual Financial Highlights ➢ Company Overview ➢ Chairman’s Message

Business Overview

Chairman’s Message

01

Chairman’s Message – Q1 FY18

5

Commenting on the quarterly results, Mr. Pravin Sheth, Chairman and Managing Director, Fiberweb (India) Limited said :

“This first quarter of financial year FY18, we have registered a fantastic revenue growth of

• ver 310% and our overall profit has also shown a tremendous increase of over 230%. With

new capacities coming in and introduction of new Melt-Blown technology, we expect this financial year to be brighter. We are very happy that our consistent performance and focus on new and innovative products has been successfully helping us to bag new orders and grow our business. We have witnessed a lot of demand from USA market. We are experiencing a strong traction in demand from various industries across the globe. The quarter gone by, we executed number of orders for well known and highly reputed USA based distributors, (i.e. Rs. 121 mn, Rs. 208 mn and Rs. 190 mn.). With these new orders, we have a strong order book of Rs. 147 cr. At the same time we are also witnessing a healthy uptick in enquiries from across the world. On the capacity enhancement front, the melt blown machinery is getting setup at our Daman facility and we expect it to be operational in September’17. I thank the entire team of ‘FIBERWEB’ for their untiring efforts, hard work, sincerity and high

• dedication. Also, I would like to thank our valued Shareholders, whose support and faith in
• ur Company has given us the determination and ambition to go from strength to strength.”

Quarterly Highlights

Quarterly Consolidated Financial Highlights

02

Quarterly Financial Highlights – Q1 FY18 Vs. Q1 FY17

Revenue

• Rs. 53.7 cr

231%

PAT

• Rs. 7.7 cr

EPS

• Rs. 5.7 (vs. Q1 FY17 – Rs. 1.8)

313%

EBTIDA

• Rs. 8.4 cr

181%

7

211%

Revenue (Rs. Crore) PAT (Rs. Crore) EBITDA (Rs. Crore)

13.1 22.1 26.6 68.6 53.7 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18

Quarterly Highlights – Q1 FY18

3.0 3.6 5.0 8.2 8.4

1 2 3 4 5 6 7 8 9

Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 2.3 2.8 4.0 8.1 7.7

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 8

Quarterly Profitability Highlights – Q1 FY18

• Rs. Crores

Q1 FY18 Q1 FY17 YoY % Q4 FY17 QoQ % Total Income from Operations 53.7 13.0 313.2% 68.6 (21.7%) Raw Materials 41.6 5.5 54.7 Employee Cost 1.0 1.0 1.1 Other Cost 2.7 3.5 4.6 Total Expenditure 45.3 10.0 60.4 EBITDA 8.4 3.0 181.0% 8.2 2.2% Interest 0.0 0.0 0.0 Depreciation 0.8 0.8 0.2 Other Income 0.0 0.1 0.0 Exceptional Item 0.0 0.0 0.0 Profit Before Tax 7.7 2.3 8.1 Tax 0.0 0.0 0.0 Profit After Tax 7.7 2.3 230.6% 8.1 (5.1%) EPS (Rs.) 5.7 1.8 210.9% 6.4 (10.6%)

9

03

Annual Consolidated Financial Highlights

03

Annual Financial Highlights – FY17

11

Revenue

• Rs. 130.4 cr

174bps

PAT Margin 13.2%

142%

PAT

• Rs. 17.2 cr

265bps

EBITDA Margin 15.3% EPS

• Rs. 13.7 vs. Rs. 6.3

111%

EBTIDA

• Rs. 20.0 cr

155% 116%

Revenue (Rs. Crore) PAT (Rs. Crore) / Margin (%) EBITDA (Rs. Crore) / Margin (%)

50.8 64.6 68.5 61.9 130.4 FY13 FY14 FY15 FY16 FY17

Financial Highlights - FY17

1.9 1.6 2.2 7.8 20.0 3.8% 2.5% 3.2% 12.6% 15.3%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 5 10 15 20 25

FY13 FY14 FY15 FY16 FY17

• 1.2
• 0.8

2.0 7.1 17.2

• 2.3%
• 1.2%

3.0% 11.5% 13.2%

• 4%
• 2%

0% 2% 4% 6% 8% 10% 12% 14%

• 5.0

0.0 5.0 10.0 15.0 20.0

FY13 FY14 FY15 FY16 FY17 12

Total Asset Turnover (x) RoCE (%)

0.6 0.9 0.9 1.0 1.1 FY13 FY14 FY15 FY16 FY17 0.1%

• 1.0%

3.1% 7.9% 18.7% FY13 FY14 FY15 FY16 FY17

Balance sheet Highlights

13

Networth Turned Positive in FY17 – 92 Crores RoE Stands at 19%

Annual Profitability Highlights

• Rs. Crores

FY17 FY16 YoY % Total Income from Operations 130.4 61.9 110.5% Raw Materials 91.9 34.8 Employee Cost 4.3 4.2 Other Cost 14.2 15.2 Total Expenditure 110.4 54.1 EBITDA 20.0 7.8 154.7% EBIDTA margin (%) 15.3% 12.6% 265bps Interest 0.0 0.0 Depreciation 2.7 3.2 Other Income 0.0 0.0 Exceptional Item 0.0 2.5 Profit Before Tax 17.2 7.1 Tax 0.0 0.0 Profit After Tax 17.2 7.1 142.4% PAT Margin (%) 13.2% 11.5% 174bps EPS (Rs.) 13.7 6.3 116.1%

14

▪ Better realization on account of higher contribution from value added products ▪ Commencement of the Dubai Subsidiary adding to the Topline ▪ Increasing proportion of higher margin converted products leading to better profitability

Balance Sheet Highlights

• Rs. Crores

Mar-17 Mar-16 Shareholder’s Funds 92.1

• 44.7

Share capital 13.3 12.6 Reserves & Surplus 78.8

• 57.3

Capital Reserves 0.0 0.0 Money received against warrants 0.3 0.0 Non-current liabilities 0.0 103.4 Long term borrowings 0.0 103.4 Defer Tax liabilities 0.0 0.0 Other Long-Term liabilities 0.0 0.0 Long-Term Provisions 0.0 0.0 Current liabilities 25.3 3.1 Short Term Borrowings 0.0 0.1 Trade Payables 24.8 2.4 Other Current liabilities 0.1 0.1 Short-term provisions 0.5 0.4 Total Equities & Liabilities 117.7 61.8

• Rs. Crores

Mar-17 Mar-16 Non-current assets 45.8 42.5 Fixed assets 38.8 40.9 Non-current Investments 0.0 0.0 Long-term loans & advances 6.9 1.6 Other non-current assets 0.0 0.0 Current assets 71.9 19.3 Current investments 0.0 0.0 Inventories 10.5 7.5 Trade receivables 39.6 5.3 Cash & Cash equivalents 21.5 6.4 Short-term loans & Advances 0.3 0.1 Other Current Assets 0.0 0.0 Total Assets 117.7 61.8

15

Company Overview

04

Company Overview

17

Pioneer and amongst leading players in manufacturing of Spun bond non Woven Fabric in India 100% Export Oriented Unit

▪ Over 70% Revenues from Exports

Strong focus on Quality

▪ International accreditations and certifications -ISO 9001-2008, 14001-2004, OHSAS 18001:2007, Intertek and UKAS

Zero Debt Company

▪ Q1FY17 – Out of BIFR and turned Net worth Positive

State of art manufacturing facilities – 7,500 MT Capacity

▪ Unique double beam technology from renowned manufacturer, Reifenhauser Gmbh, Germany

Journey So Far

2007 2005 1997

1996 1995

Forayed into manufacturing Spun bound Non Woven Products

1996

1996 Established as Plastic moulding company Started Exports to South America Exports to UAE & South Africa Exports to UK, Europe, New Zealand & Australia 2016 Increase exports to USA Landmark order of 2,000 Tons from USA 80% of Export business from USA, 10% from UK, 8% from Europe 2005 1995 1986

18

2017

Crossed Rs.100 cr. topline Approved supplier to Lowe (amongst leading & reputed Company in USA) leading to being approved supplier to Walmart in USA

Professionally Experienced Team

19

• Mr. K.C Shah- Vice President (Operations)
• Mr. B. N. Raval - General Manager (Works)

▪ Responsible for Quality Assurance and Engineering ▪ Total experience – 30 years, 22 years with Company ▪ Earlier with Mafatlal Group ▪ Electronics Engineer, Head of Factory Operations ▪ Total experience – 35 years, 22 years with Company ▪ Earlier with Mafatlal Group

• Mr. Krishnan – Chief Financial Officer
• Mr. G. Ravindran- Executive Director
• Mr. Dinesh Mori- Dy. General Manager (Engineering)
• Mr. Rajiv Solanki - Production In-Charge
• Mr. Pravin Sheth- Chairman & Managing Director

▪ B. Tech (Chem Engg), M.Tech (Ind. Management)– IIT, Kharagpur ▪ Responsible for manufacturing facility in Daman ▪ Total experience – 40 years, 25 years with Company ▪ Earlier with RPG Group ▪ Electronics Engineer ▪ Total experience – 25 years, 10 years with Company ▪ Responsible for Maintenance ▪ B.Sc., CIPET (Plastic Technology) ▪ Total experience – 25 years, 22 years with Company ▪ Head of Processing

• Mr. Bhavesh Sheth – Non Executive Independent Director

▪ B. Com, Chartered Accountant and CFA ▪ Responsible for business development, business process and

• rganization strategy

▪ B. Com, LLB, Chartered Accountant ▪ Over 5 decades of industry experience ▪ Responsible for driving the vision and strategy for Company ▪ Earlier Director on local board of Citibank for three consecutive terms in India ▪ Over 3 decades of experience in finance, exports & administration ▪ Been with Company since 1984 ▪ Prior to 1984, worked in diamond exports

Wide Product Portfolio...

Baby Diapers Adult Diapers Feminine Hygiene Products Crop Cover Soil Cover Wind & Insect Protection Protective Hospitals & Industries Garments Lining/Backing/Interlining Upholstery, luggage's & Garments Bed sheets & Pillow/Head covers

20

.... Catering to diverse applications across various sectors

State- of- Art Manufacturing Facilities

Total Capacity – 7,500 MT

Unit 1, Daman (U.T.) ▪ 5,000 MT Capacity ▪ Unique double beam technology with diverse applications from renowned manufacturer, Reifenhauser Gmbh, Germany ▪ High quality products - accepted by large companies as end-users across developed countries Unit 2 , Daman (U.T.)- 2,500 MT ▪ 2,500 MT Capacity ▪ Leased out facility – Equipment made by same German manufacturer

21

Wide Global Reach

UAE USA UK South Africa Australia New Zealand India

22

.... Over 70% Revenues from Exports

Key Strengths

▪ Products used across diverse multiple industries for various end uses

Multiple Sector Applications Strong & Robust Order Book State of Art Facilities Technical Textile – Rising Demand Presence Across Globe Zero Debt Company

01

Key Strengths

▪ Debt free Company ▪ Q1FY17 – Out of BIFR and turned Net worth Positive ▪ Robust order book of Rs. 147 Crores ▪ Economic Growth, government initiatives to promote Technical Textile sector ▪ Increased Investments in industry, higher consumption and growing exports ▪ Double beam technology with diverse applications from renowned manufacturer Reifenhauser Gmbh, Germany ▪ High product quality, accepted by Blue-Chip companies as end-users in many advanced countries ▪ 100% Export Oriented Unit (EOU) with ~70% products exported to countries- USA, UK, Europe, Australia, New Zealand, South Africa & Middle East countries

23

06 02 03 05

Way Ahead...

Leased capacity of 2,500 MT to increase the capacity by 50% immediately, leading to increase in production and cater to demand without any capex – achieve better ROI To cater to increasing demand across markets (domestic & international), expansion planned in FY17-18. Raised Rs. 32.58 cr through preferential allotment to buy two more machines (capacities of ~10,000 MT spun bound & ~2,000 MT melt blown) Growing demand from price sensitive customers in USA - Set up subsidiary in Free Trade Zone, UAE to cater to this increasing demand

Leased Model

24

For further information, please contact: Company : Investor Relations Advisors : Fiberweb (India) Limited. CIN No. L25209DD1985PLC004694

• Mr. Pravin Sheth

Chairman & Managing Director pravin@fiberwebindia.com

• Mr. P S Krishnan

Chief Financial Officer krishnan@fiberwebindia.com www.fiberwebindia.com Bridge Investor Relations Pvt. Ltd. CIN No. U74900MH2016PTC273679

• Ms. Savli Mangle

022 41200439 savli@bridge-ir.com

• Mr. Amit Sharma

022 41200439 amit@bridge-ir.com www.bridge-ir.com 507910 FWB FIBE.BO

Thank You